Which of the Following Would Most Likely Be a Defect

question 43

Multiple Choice

Which of the following would most likely be a defect under 402A of the Restatement of Torts?

• A)A chair produced without inserting the appropriate screws.
• B)A product with a defective design that is nevertheless the "state of the art."
• C)Vodka that is 100 proof and makes people drunk and causes liver damage after years of heavy use.
• D)All of the above are defects under 402A.

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of the corporation's profits.

Equity

Refers to the ownership interest held by shareholders in a corporation, measured by the portion of the company's capital that they own outright without any debts.

Dividends

Payments made by a corporation to its shareholders, typically from profits.

Dividend Yield

A ratio that shows how much a company pays out in dividends each year relative to its stock price.